Cake (Pancake Swap) : Learning The Bull Flag PatternBull Flags (Shorter Term)
Currently on CAKE:BTC we have a Chart Pattern called a Bull Flag forming. Which I have explained below & in the above chart.
• BEST ENTRY IS often when price fakes out under support or above resistance
• MIN 2 Touches each side
• PRICE MUST MOVE STRAIGHT UP or DOWN BEFOREHAND (or it is not a true flag pattern
• HIGHEST SUCCESS RATE of any chart pattern
To identify a Bull or Bear flag pattern the first key characteristic is the FLAGPOLE. The flagpole is usually a staight upwards or downwards move, if the flagpole is not abnormally straight upwards/downwards then it is probably a poor example of the pattern.
Price should then consolidate in a parallel channel (it can be sloped), this is the “flag”. The flag is a pause in the market before a up-move or down-move and we measure the flag pole for a possible price target. Bull & Bear Flags according to backtesting have the highest success rates out of any chart pattern - success rate being when they hit the potential measured move (the original flag pole height is measured, and added to the swing before BREAKOUT for a possible price target as shown in the diagrams).
The first entry is on the 4th touch of the pattern. It is also common for these patterns to have a THROWBACK (also known as bullish / bearish retest) before continuing in the direction of the breakout, this is marked as point (B) on the chart and the second entry point.
Look for bull flags forming on top of long term resistances (not below) and the opposite with long term supports on bear flags to increase probability of success also.
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So while CAKE continues to form then breaks out and stays above this Bull Flag pattern we have a higher probability of strong upwards movement, we will need to see the price eventually claim the 6600-6800 satoshi area as support for this to have a chance of happening.
See idea linked below for further education on Bull Flags.
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